Amid the COVID-19 pandemic this past year, the IRS extended the 202 tax filing deadline from April 15 to May 17.
Here are the new deadlines to note:
- The tax filing deadline is now May 17.
- The extended date to contribute to your IRA is now also May 17 -- that's $6k and another $1k if you're over 50 years old -- which could make an impact on your 2020 taxes.
- The deadline for claiming a refund for previous 2017 tax returns has been extended to May 17.
- They did not extend the estimated payment due date, so if you are someone who makes estimated tax payments, you still needed to do that by April 15. But, don't panic if you didn't know -- a lot of self-employed don't make the same amount of income throughout the year and the IRS knows that, so they allow you to annualize your income to avoid any penalties for not reporting the same amount of income for every quarter.
What if you end up with a much bigger tax bill than you expected and just can't pay it right now?
"I would try to pay as much as you can but if you can't pay, the IRS does allow you to apply for an installment agreement. That allows you to pay your debt over six years," says Greene-Lewis.
The IRS offers the option to apply for an installment agreement online if you owe $50k or less, and is pretty good about taking what you can offer with form 94-65.
It's advised to pick a recurring number that's reasonable and that you can stick to because the last thing you want to do is mess up your payment plan with the IRS.